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How Business Legal Structures Work

Assess Your Business's Legal Situation

Next, you should assess your own personal situation in relation to the types of structures. How much in taxes am I willing to pay? How much liability am I willing to assume? Will administrative costs become too much of a burden on me? These questions should all be answered together as there is no one perfect structure for everyone.

Thinking through the key issues will help you to logically select the appropriate structure given your situation. (As a quick note, many early stage businesses are currently being structured as L.L.C.s due to their advantages of pass-through income and limited liability).